Quick One Year Payday Loans Reviews

Quick One Year Payday LoansThe idea of Quick One Year Payday Loans is a solid one, at least from the perspective of the borrower. The major reason people get into trouble with payday loans is because they’re due in full on the next payday. This is how the lenders make their money, and why the APRs are so high, because the term of the loan is so short.

Taking out the money you need right now and having a full year to pay it off would really be a solution, because you’d be able to get out of the jam without adding monthly payday loan fees to the equation. The only problem with this set up is that it doesn’t make for a very good transaction for a lender. For the small amounts that are loaned on payday loans, waiting around for a year to collect on small fee just isn’t good business sense.

Maybe one day with enough payday loan reform there will be services that resemble this sort of borrower friendly model, but don’t hold your breath. Lenders know that you’re desperate for the money and that you’ll eventually have to use their services at their terms if things don’t improve on your end. They are willing to wait until you are ready to play at their rates, and have the money back to them on your next payday.

Quick One Year Payday Loans Reviews: Can You Find a Lender?

Quick one year payday loans might never catch on, but there are some lenders that are embracing this sort of flexible payback philosophy. They’re not quite that flexible, but they let you extend the repayment date to a later date than your next payday. This is often enough time to let you get out of the jam, and recover enough so that you can pay the loan off and still make it to the following payday.

If you think about it, one year is a lot of time to pay back a loan in amounts ranging from $100 to $1500 in most cases. That’s pretty much the max that lenders are willing to dole out based on your paycheck as collateral. They use a matrix that decides how much you can take out based on how much you bring home each month, and they set your limit at how much they think will get you stuck in a trap. So if you could easily pay back $200 but would have trouble paying back $500, they’ll set your limit at $500. Yes, you’ll be able to pay it back, but you’ll have to re-loan to get through the next two weeks.

Seeing Both Sides
But look at what quick one year payday loans would mean from a lender’s point of view. They would be giving out let’s say $500 with a fee of about $65. If there are 26 paydays a year on a biweekly pay plan they are looking at collecting $1690 in fees if they can keep you in the trap. If they give you that year to pay it back, they are just getting their one time fee of $65 and they’d have to shut down.

Be Careful About Extension Fees
There are some online lenders that let you do what basically amounts to a rollover. This is where you just have to pay a fee and you can extend your loan without having to come up with the full balance. Most states don’t allow this, but online lenders can skirt this and offer it as a way to extend the loan. In these instances, you might be able to pay a lesser amount that they may refer to an an extension fee. But if you do that too many times, you’re paying a virtual APR in the thousands of percents, and you’re still only taking out the money the one time.

Just be on the lookout for any company that promises long-term payday loans, because it has to make financial sense for them, and to do that they’ll come up with some pretty unique ways to word it so it sounds like a good deal to you. It’s like the casinos in Vegas, the house always wins so if it seems like a good deal for a payday loan, watch the fine print and run the numbers.

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